SK Trading International Lays Foundation for Biojet Fuel Development

Seoseokwon CEO "Will Become a Specialized Biojet Fuel Trading Company"

SK Trading International is investing in a domestic waste resource-based raw material company to establish a foundation for securing raw materials for 'bio aviation fuel.'

SK Trading International announced on the 16th that it has signed a stock purchase agreement to invest in Daegyeong O&T. This agreement involves SK Trading International forming a consortium with KDB Industrial Bank PE Office and Eugene Private Equity (PE), with the three companies jointly establishing a special purpose company (SPC) to acquire 100% of Daegyeong O&T's shares. SK Trading International will hold 40% of the SPC shares, while KDB Industrial Bank and Eugene PE will hold 60%. Detailed information other than the shareholding structure will not be disclosed due to contractual agreements.

Founded in 1995, Daegyeong O&T specializes in producing waste resource-based raw materials at 13 business sites nationwide. It is the largest domestic company supplying animal fats derived from slaughter by-products and waste cooking oil generated from restaurants and food factories as raw materials for biodiesel and bio aviation fuel.

Animal fats and waste cooking oil have recently gained attention as key raw materials for bio aviation fuel amid the expanding sustainable aviation fuel (SAF) market. As recycled waste resources, they are globally unregulated and have a greater carbon reduction effect compared to plant-based raw materials such as soybean oil.

SK Trading International expects this investment to help secure raw materials for bio aviation fuel. Unlike land transportation modes that replace fossil fuels with batteries and fuel cells, aviation will inevitably continue to use 'liquid fuel' due to limitations in battery density and safety. Countries worldwide are seeking alternatives such as biofuels and synthetic crude oil-based fuels to reduce carbon emissions throughout the entire aviation fuel consumption process.

Earlier, in March of this year, SK Trading International invested in the Chinese UCO company Jinshang (Jinshang, 四川金??保科技有限公司). Established in 2017, Jinshang is the largest UCO supplier in the southwestern regions of China, including Sichuan, Yunnan, and Guizhou provinces, and has been expanding its production scale with early attention to the bio aviation fuel market. With the investment in Daegyeong O&T following Jinshang, SK Trading International has established a foundation for securing bio aviation fuel raw materials spanning Korea and China.

Seokwon Seo, CEO of SK Trading International, said, “In line with SK Innovation’s ‘Carbon to Green’ strategy, we are proactively preparing for the SAF market. We will strive domestically and internationally to become a specialized trading company that reliably supplies SAF to the aviation industry both at home and abroad.”

This content was produced with the assistance of AI translation services.